Thread regarding Sears layoffs

Grand settlement

Of all postings, I've not seen the topic of the "grand settlement" made by the Sears CEO in early 2017. That out-of-court settlement, which has been published and is a matter of public record, involved $40 million dollars. It essentially settled (in part) several lawsuits initiated by Sears board members or investors, who had significant concerns with Sears Holdings (SHC) and the (reportedly) self-serving investments of the Sears CEO. While the public simply doesn't want to shop any longer at the obviously-dated Sears stores, most notably because of a significant quantity of shoddy (imported) merchandise on Sears' shelves, along with the tiring task of actually finding a Sears Store employee when needed; the huge amount of the settlement could have been avoided and directed elsewhere. Such as, eliminating the Sears exploitation of lower-paid and valuable employees. Anyway, the demise of Sears is simply no more than an eyelash in the eye -- you just buy some Visine and move on. Eventually, your vision clears and the eye incident is forgotten.

Someone posted this recently on an old thread, I thought it should be more visible, so copied it here

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Post ID: @OP+MKooZ8D

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Yes, absolutely correct. It could only happen in America, of course.

Where else does a CEO consistently "shore up" an organization with his own personal funds from time to time, resulting in a brief and artificial illusion that the (Sears) organization has some sort of grand plan to bounce into profitability? Additionally, then settling -- without an admission of wrongdoing, of course; lawsuits from others who are not blind to apparent (costly) mismanagement by little Eddie.

Just when I thought Houdini was the greatest smoke-and-mirror guy of all time !

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Post ID: @scs+MKooZ8D
  1. The settlement was for claims of breaking fiduciary duty with respect to fraudulent conveyance (Seritage); of which your post makes no mention

  2. By settling the CEO and BOD deny and wrongdoing

  3. Settlement funds were from O not from the CEO or any individual directors or executives

  4. Oddly the settlement; although stated by the judge as being for shareholders; was awarded to the company (Sears Holdings: SHLD); and not individual shareholders. Lampert stated the funds would be used to pay debts (ie: Bonds). Ironically; as Sears largest bond holder that makes him a direct beneficiary of the awarded funds; while leaving shareholders [intended to be rewarded] in the cold.

Essentially Lampert was rewarded for claimed breaches of his own fiduciary duties.

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Post ID: @jjl+MKooZ8D

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